How to Start a Business in Finland
Finland is a gateway to Northern Europe, renowned for its economic stability, innovation leadership, and high quality of life. As an international entrepreneur, establishing a business in Finland offers access to a highly educated workforce, a transparent legal system, and a thriving tech ecosystem. This comprehensive guide will walk you through business structures, costs, compliance, and cultural nuances—plus how Scandicorp can support you at every stage.
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Why Consider Starting a Company in Finland?
Innovation & Technology
Finland leads in ICT, clean tech, life sciences, and digitalization.
Political & Legal Stability
A reliable, transparent regulatory environment.
Skilled Workforce
Highly educated, English-fluent, and tech-savvy talent pool.
Strategic Location
EU membership, proximity to Nordic, Baltic, and Russian markets.
Excellent Infrastructure
World-class logistics, digital networks, and quality of life attract and retain talent.
Might interest you: Innovation funding in Finland
Business Structures: Which Form Is Right for You?
| Structure | Key Features | Typical Use Case |
| Private Limited (Oy) | No minimum share capital, limited liability, 1+ board member (with deputy if <3), EEA residence | Most common for SMEs and international firms |
| Public Limited (Oyj) | €80,000 minimum share capital, at least 3 board members, managing director required | For large ventures, public listings |
| Branch of Foreign Company | No share capital, local representative required for non-EEA, unlimited liability | For foreign companies expanding to Finland |
| General/Limited Partnership | No minimum capital, at least two partners, unlimited (general) or limited (limited) liability | Niche, often for small or family businesses |
| Sole Trader (Toiminimi) | Simple setup, full personal liability | Micro-businesses, freelancers |
Key Notes:
- At least half of board members must reside in the EEA (unless exemption granted).
- Corporate directors are not permitted; only individuals can serve as directors.
- All companies must have a registered office in Finland.
Might interest you: Finland Corporate Tax Rate
Start your business in Finland with Scandicorp
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Step-by-Step: How to Start a Business in Finland
Choose Your Business Structure
Decide between Oy, Oyj, branch, partnership, or sole trader based on your goals and scale.
Select and Reserve a Business Name
Must be unique, not misleading, and not too similar to existing names or trademarks. Parallel names in English are possible.
Prepare Incorporation Documents
Draft Articles of Association and board minutes; appoint directors and deputies.
Deposit Share Capital (if applicable)
- Oy: No minimum required.
- Oyj: €80,000 must be deposited before registration.
Register with the Finnish Trade Register
- Registration typically takes 2–3 weeks.
- Fees: €240–€380 for Oy, €380+ for Oyj.
Register with the Tax Administration
VAT registration is mandatory if turnover exceeds €8,500. Also register as an employer or for prepayment tax if needed.
Open a Business Bank Account
Required for managing company finances and depositing share capital.
Obtain Licenses or Make Notifications (if applicable)
Certain sectors require approval from relevant authorities before operations.
Set Up Accounting and Reporting
Engage a local accountant; determine if audit requirements apply.
How Much Does It Cost to Start a Business in Finland?
When planning how to start a business in Finland, one of the most common questions is how much it costs to set up a business. The cost of starting a business in Finland depends on your chosen structure, legal needs, licensing, and more. Here’s a breakdown:
| Type | Share Capital | Registration Fees | Other Costs (Est.) |
| Private Limited (Oy) | €0 | €240–€380 | €500–€2,000+ |
| Public Limited (Oyj) | €80,000 | €380+ | €2,000+ |
| Branch | N/A | €380+ | €1,000+ |
Additional Costs May Include:
- Legal documents and translations
- Licensing fees
- Accounting and audit services
- Employer social contributions (21–24% of salary)
- Office rental or virtual office services
Legal and Regulatory Compliance
Board and Management
- Oy: At least one board member; a deputy if fewer than three.
- Oyj: At least three board members and a managing director.
- Half of board and MD must reside in the EEA unless exempt.
Auditing
Required for Oyj and large Oy. Exemptions for small Oy if:
- Balance sheet total < €100,000
- Net sales < €200,000
- Employees < 3
Accounting & Reporting
All companies must maintain books and file annual statements.
Taxation
- Corporate tax: 20%
- VAT: 24% (standard), 14% (food), 10% (books, transport)
- Dividends and capital gains: Often exempt for group structures
VAT Registration
Required if turnover exceeds €8,500/year.
Employment Law and Social Costs
- Contracts: Must meet collective agreement terms.
- Working Hours: 8 hours/day, 40 hours/week.
- Leave: 2–2.5 days/month of paid vacation.
- Sick & Parental Leave: Statutory entitlements apply.
- Social Costs: Employers contribute ~21–24% of gross salary.
Might interest you: Employment Laws and HR Practices in Finland
Taxation and Financial Regulations
- Corporate Tax: 20% on worldwide income
- Group Contributions: Permitted for Finnish groups (90%+ ownership)
- Loss Carryforward: Up to 10 years
- Dividends & Gains: Favorable treatment for EU/EEA company structures
- No Exchange Controls: Capital can move freely; large transfers require reporting
Might interest you: Startup Funding in Finland – Government Incentives
Industry-Specific Licensing and Notifications
Sectors That May Require Licenses:
- Financial Services: Banking, insurance
- Healthcare & Pharma: National Agency for Medicines
- Alcohol: Product Control Centre
- Telecoms: Ministry of Transport
- Energy, Mining, Chemicals: TUKES
- Others: Security, postal, tour operators
Scandicorp helps streamline licensing and compliance procedures.
Business Name Rules and Language
- Must be distinct and not misleading
- Register in Finnish or Swedish; English versions allowed
- Auxiliary business names can be registered
- Official filings must be in Finnish or Swedish, but English is accepted in practice
Opening a Bank Account
- Required for operations and capital deposit
- Physical presence and identity checks mandatory
- Scandicorp facilitates bank introductions and process guidance
Ongoing Compliance and Reporting
- Financial Statements: Filed with Trade Register and Tax Office
- Corporate Tax Returns: Due within 4 months after year-end
- VAT Returns: Monthly, quarterly, or annually
- Employment Reports: Payroll, social insurance, and contract management required
Business Environment and Culture
- Ease of Doing Business: Transparent, efficient, low bureaucracy
- Culture: Punctuality, directness, and trust are valued
- Language: English is widely spoken in business; official languages are Finnish and Swedish
Might interest you: Finland Business Culture and Etiquette
Frequently Asked Questions (FAQs)
Can foreigners own 100% of a Finnish company?
Yes. One founder must be EEA-resident unless an exemption is granted.
How long does it take to register a company?
Typically 2–3 weeks once documents are complete.
Do I need to be physically present?
Only for opening a bank account. Registration can be handled remotely.
Is an auditor required?
Only for larger companies. Smaller Oy can be exempt under certain thresholds.
What are the ongoing compliance requirements?
Annual filings, tax returns, VAT, and employment compliance.
Are there restrictions on repatriating profits?
No exchange controls. Profits can be repatriated freely, subject to tax treaties.
Scandicorp: Your Trusted Partner in Finland
Scandicorp offers:
- Company formation and registration
- Registered office and local director services
- Assistance with bank account setup
- Tax, accounting, and payroll support
- Licensing and compliance management
- Virtual office and administrative solutions
- Local business introductions and network access
We provide a free consultation to help you get started and ensure long-term compliance.
Might interest you: Corporate Law in Finland
Ready to Start?
Whether you’re starting a company in Finland for the first time or expanding your global presence, the country offers unmatched opportunity, security, and a strategic location in the heart of Northern Europe. With Scandicorp as your partner, you can focus on growth while we handle the legal, administrative, and regulatory details.
📞 Contact Scandicorp today to begin your Finnish business journey.
Disclaimer: This guide is for informational purposes only. For tailored legal or tax advice, contact Scandicorp or a qualified professional.
Contact and Consultation
Embarking on your business journey in Finland is just a conversation away. Scandicorp is here to guide you through every step of the process. For any inquiries or further information, you can easily reach us through the following contact details:
Email: info@scandicorp.com
Our team is ready to assist you with any questions you may have about starting and running a business in Finland.
Free Initial Consultation
Understanding the intricacies of setting up a business in a new country can be daunting. To help you get started, Scandicorp offers a free, no-obligation initial consultation. This session is designed to provide you with an overview of the process, answer your initial questions, and assess how we can best support your business objectives in Finland.
